Watson Wins

Imagine three podiums. One is labeled Ken, the middle one Watson, and the third one, Brad. IBM assured everyone that Watson had no internet access and all three players had to use their mechanical buzzers. Host Alex Trebek ran the game as he always had. Categories? For this round the contestants could choose from: Literary Character APB, Beatles Names, Olympic Oddities, Name the Decade, Final Frontiers, Alternate Meanings.

With countless business, medical, and consumer applications where Watson’s skills are valuable, “he” can affect all of us. Physicians, for example, could consult Watson for speedy medical diagnoses that could include a “confidence” number indicating whether the statistics are convincing.

As economists, Watson takes us to spillovers and positive externalities. Originally involving 2 entities, Watson’s impact will ripple outward to benefit many.